U.S. stock-index futures soar: U.S. stock index futures are pointing to a sharply higher open on Friday after European leaders unexpectedly reached a deal on struggling euro zone banks. Investor optimism was further increased by a slightly higher than expected rise in U.S. personal income in May. The Dow futures, the S&P futures and the NASDAQ future are all trading more than a percent and half higher.

Asian markets end higher: Asian markets closed higher on Friday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rising 1.5 percent to close above the key 9,000 level mark for the first time in seven weeks. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 2.2 percent at 19441.46, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended 1.4 percent higher to 2225.43 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped 1.2 percent to 4,04.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was the best performer in the region, ending up 2.6 percent.

Stocks in Focus

U.S.

* Home builder KB Home (NYSE:KBH) reported a narrow than expected second-quarter loss narrowed of $24.1 million or 31 cents a share. Revenue increased 11 percent to $302.9 million, which also topped estimates.

* Goldman Sachs Group, Inc. (NYSE:GS) said it has eliminated several dozen positions in its U.S. operations, as it looks to cut costs amid a slowdown in capital market activity.

* Athletic apparel maker Finish Line Inc (NASDAQ:FINL) posted first quarter earnings of 24 cents a share, one cent above estimates. Revenue for the quarter stood at $319 million, in line with consensus estimates. The company has raised its full year earnings per share forecast.

* ServiceNow, the provider of cloud-based services for business, has priced its initial public offering above its expected range at $18, and is set to begin trading on the New York Stock Exchange this morning.

* Electrical equipment maker AZZ Incorporated (NYSE:AZZ) posted fiscal first quarter earnings, excluding certain items, of $1.02 a share, that easily beat the average analysts’ estimate of 81 cents a share. The company also raised its full year profit and revenue guidance.

* Internet advertising company ValueClick Inc (NASDAQ:VCLK) has said that it expects second-quarter revenue to be at the high end of it’s previously forecast range of $155 million to $160 million. Revenue jumped 11 percent to $127.1 million that also topped Street expectations.

* The board of petroleum refiner HollyFrontier Corp (NYSE:HFC) has approved a new $350 million share buy-back program, bringing its total remaining authorization to about $410 million.

* Macquarie Group Limited has initiated coverage onFacebook Inc (NASDAQ:FB) with a “neutral” rating, and has set a price target of $34. Facebook was trading 1.8 percent higher in New York pre-market trading.

* Enterprise software maker Oracle Corporation (NASDAQ:ORCL) has been upgraded to “outperform” from “sector perform” at RBC Capital. The stock was up 1.5 percent.

* Saks Inc (NYSE:SKS) was lifted to “overweight” from “neutral” at JPMorgan Chase, with the target price raised to $12 from $11.

Europe

* Anheuser-Busch InBev NV (ADR) (NYSE:BUD), the maker of Budweiser and Stella Artois beers, has agreed to buy the 50 percent of Mexican brewer Grupo Modelo it does not already own, for $20.1 billion in cash.

* Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) could face a hefty fine of about 150 million pounds ($232.59 million) for colluding to manipulate the financial markets, the same offence that has hammered Barclays PLC (ADR) (NYSE:BCS) this week, British daily The Times reported.

* In a surprise announcement, Credit Suisse Group AG (ADR) (NYSE:CS) said it expects to make a profit in the second quarter. Shares of Credit Suisse have slumped to a 20-year low this week, and the statement might have been aimed to restore investor confidence.

* Nomura Holdings, Inc. (ADR) (NYSE:NMR), Japan’s largest brokerage, will cut pay for top executives and will temporarily halt an equity sales operation, as part of its effort to solve a damaging insider trading scandal.

* The Western Australian government has delayed a decision on the environmental assessment on Woodside Petroleum Limited (ASX:WPL)’s 35 billion Australian dollars ($35 billion) Browse liquefied natural gas project.

* Suzuki Motor Corporation (TYO:7269) jumped 3.3 percent in Tokyo trading after the Nikkei newspaper reported that the company would increase its capital expenditure by over 60 percent through fiscal 2016.